Philco Enterprises is preparing its budget for the Sherwood Park location for the month of May $2024.$ The following information is

available:

Company policy is to maintain ending merchandise inventory at $20\%$ of the following month's Cost of Goods Sold. Expected June $2024$

Cost of Goods Sold is $$300,000.$

Required:

a$)$ Prepare the Merchandise Purchases Budget for May, $2024.(5$ marks$)$

b$)$ Using your solution to part a$)$ above prepare a budgeted Income Statement for May, $2024.(10$ marks$)$